Why NASDAQ:AMZN Is a Promising High-Growth Stock in the Midst of Consolidation.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether AMAZON.COM INC (NASDAQ:AMZN) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but AMAZON.COM INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:AMZN scores a 8 out of 10:

• AMZN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 117.21%, which is quite impressive.
• AMZN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.57% yearly.
• Looking at the last year, AMZN shows a quite strong growth in Revenue. The Revenue has grown by 11.93% in the last year.
• Measured over the past years, AMZN shows a quite strong growth in Revenue. The Revenue has been growing by 19.80% on average per year.
• Based on estimates for the next years, AMZN will show a very strong growth in Earnings Per Share. The EPS will grow by 29.46% on average per year.
• Based on estimates for the next years, AMZN will show a quite strong growth in Revenue. The Revenue will grow by 10.89% on average per year.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Looking at the Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:AMZN, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 5.70 indicates that AMZN is not in any danger for bankruptcy at the moment.
• AMZN has a Altman-Z score of 5.70. This is amongst the best in the industry. AMZN outperforms 81.25% of its industry peers.
• The Debt to FCF ratio of AMZN is 1.84, which is an excellent value as it means it would take AMZN, only 1.84 years of fcf income to pay off all of its debts.
• AMZN has a better Debt to FCF ratio (1.84) than 71.88% of its industry peers.
• A Debt/Equity ratio of 0.28 indicates that AMZN is not too dependend on debt financing.

How do we evaluate the Profitability for NASDAQ:AMZN?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:AMZN scores a 7 out of 10:

• The Return On Assets of AMZN (8.53%) is better than 75.00% of its industry peers.
• AMZN has a better Return On Equity (19.24%) than 65.63% of its industry peers.
• The Return On Invested Capital of AMZN (11.60%) is better than 71.88% of its industry peers.
• The last Return On Invested Capital (11.60%) for AMZN is above the 3 year average (6.30%), which is a sign of increasing profitability.
• AMZN has a Profit Margin of 8.04%. This is in the better half of the industry: AMZN outperforms 78.13% of its industry peers.
• AMZN's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 9.77%, AMZN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
• AMZN's Operating Margin has improved in the last couple of years.
• The Gross Margin of AMZN (48.41%) is better than 68.75% of its industry peers.
• In the last couple of years the Gross Margin of AMZN has grown nicely.

How does the Setup look for NASDAQ:AMZN

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:AMZN currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

AMZN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 197.11, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of AMZN

For an up to date full technical analysis you can check the technical report of AMZN

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.